Author: redheadedlaw

Programs That Help With Child Support Payments And Collections

Programs that help with child support payment and collections

Written by redheadedlaw on January 25, 2024. Posted in Child Support.

One of my goals is to bring awareness to families in The Greater Houston area of programs that are offered right in our backyard. There are several families who find themselves needing assistance and I’ve outlined two programs which are beneficial in helping with child support payment, and collections.

The Noncustodial Parent Choices (NCP Choices)

The Noncustodial Parent, or NCP, Choices Program is offered to low-income noncustodial parents who are unemployed or underemployed and behind on their child support payment. The children of these parents must be current or former recipients of public assistance in order to be a part of the program.

The NCP Choices Program has a mission to help noncustodial parents overcome the barriers to employment and career advancement while working to become stable and make consistent child support payments.

The NCP Choices Program operates in 17 Workforce Development Boards in the state of Texas including the Gulf Coast and Southeast Texas. (For a full list of the development boards, visit their website.)

Over the last 10 years the NCP has been successful at delivering employment, job retention and child support results to one of the hardest-to-serve population while producing some hefty stats:

71% of participating noncustodial parents entered employment.
On average, the noncustodial parents entered employment within eight weeks.
77% of participating noncustodial parents retained employment for at least 6 months.

In order to be eligible for the NCP Choice program, you must meet certain qualifications. Download their comprehensive guide in order to learn more about the eligibility requirements and program.

The FOCAS Program

The FOCAS Program stands for Focus On Collection And Services and is provided by the District Clerk’s Office in collaboration with partners to enhance the collection of child support by monitoring and enforcing child support utilizing various enforcement tools.

The main goal is to ensure that children in the Houston area are given continued support and improving their lives.

There are several benefits of this program including:

Locating non-custodial parents
Collecting child support through income withholding and income tax refund intercept
Enforcing child support orders and medical support orders
Reviewing and modifying child support orders

There are certain qualifications for the FOCAS program. Learn if you and your family qualifies by downloading the FOCAS presentation.

While many families hire a private attorney to handle certain aspects of a divorce, as they find the process less stressful and faster than dealing with an agency. However, it’s important to learn about and understand the many different programs available to families and children while going through a divorce. Take advantage of these programs and share them with your friends and family in order to build awareness in our community.

Painless Divorce … Is it even possible?

Written by redheadedlaw on December 9, 2023. Posted in Attorney, Divorce, Serenity.

If we asked 100 divorced couples if it’s possible to have a painless divorce, the answers would likely be split down the middle. The “of course it can be done” and the “absolutely no way in heck” responses would be about equal. Why the disparity? Because like anything that involves emotions and determinations of fault, opinions will vary widely. After decades of experience in family law, I can tell you that not only is it possible to have a (relatively) painless divorce, it is vastly preferable to the alternative. Here are a few of my observations that may help during the process.

Get your documents in order

This is best done early, because no matter what happens, you’ll need to document your income, assets, and expenses for disclosure. Insurance policies, employee benefits, and other pertinent information will also be needed. These take a while to gather and handling everything early will avoid stress later. It is strongly advisable not to hide anything – your spouse can trigger a more detailed investigation, and the court will not be happy with deception.

Assemble some support

Your support won’t just include legal personnel – you will need advisors, friends and possibly a therapist. Be careful who you talk to, because some “friends” might decamp for the other side, and your secrets go with them. Many churches sponsor groups for men and women going through divorce, and it can be invaluable to be able to share in this forum. Believe me, even an amicable divorce proceeding is a lonely journey without support.

Know the law

This is important because people sometimes get fully entrenched in a position that may not be supported by law. For example, some state courts practice equitable division of assets (as opposed to dividing current assets in half). In these situations, there are a number of factors that are reviewed by the court, and one party may receive less than they feel is fair. Texas is a community property state, not an “equitable division” state, which makes it important to consult an attorney (and not listen to your friends or Google!)

Investigate alternatives to court

Couples don’t have to wind up as adversaries in the courtroom. Most courts require mediation if an agreement cannot be reached before there can be a trial. Mediation involves meeting with a neutral third-party professional along with your attorney. The mediator’s job is to help a couple reach a divorce agreement without the expense and angst of court. Your attorney will be instrumental in choosing a mediator who is also an attorney who knows the law and your court and has a track record of settling cases. About 90% of family law cases settle at mediation; the exception is custody cases, which have a lower settle rate.

Consider it a business transaction

When you get married, it is like a merger between two unaffiliated companies. The marriage concludes the merger, and the combined entity then moves forward in life. A divorce is just like “spinning off” a corporate division. Once concluded, there are two independent companies, much like existed before. By emotionally distancing yourself from the heartbreak, it becomes possible to wrap up the proceedings with much less drama and expense. Of course, children are not part of any business transaction, but they may be involved in a divorce. If young, try to remove them from the proceedings. No matter what age, don’t bad-mouth your spouse in front of them. They also are entitled to a future without guilt or shame.

Make a list of needs and wants

In divorce, you really shouldn’t sweat the details when it comes to possessions and small issues. Working as amicably as possible with your spouse is essential. By making small compromises along the way, while always consulting your attorney, you build a certain level of trust and the compromises are reciprocated. Obviously, you will need a car post-divorce, but do you really need your (soon to be) ex-mother-in-law’s silver set that just happens to be in your storage unit? Perhaps it would be better to return the set in exchange for something that will really matter to your future.

Your future should be top of mind

This is critical – when considering needs and wants, think of how you want to be post-divorce. Do you want to be that angry, vengeful, bitter person who is remembered for drawing out the entire process no matter what the cost? Or is it better to take the high road, finish the “transaction,” and move on in life? Sure, you might want to “stick it” to the other party, but keep in mind how you want to feel that first day waking up single. You need to be able to move forward with confidence and without regret. Before pursuing an action, ask yourself will this help me or hurt me post-divorce? A good lawyer will not be encouraging you to “stick it to the other person” but will advise you on the best settlement for you considering the law and your needs.

Be ready to move forward

We read of celebrity divorces that involve dozens of witnesses and drag on for years. In my experience, this is exactly what you don’t want. If divorce is in your future, get prepared and be realistic. Don’t spend every ounce of energy and your last dollar fighting something that you both consider inevitable. Figure out how to cooperate during the process, and it may be possible to save a great deal of time, money, and heartache. Take stock of your remaining friends, reassure your kids, and you can start anew. If you have any questions or would like more information, please feel free to contact the Essex Firm for an in-person or virtual consultation.

Senior Health Benefits and Divorce in Texas

Written by redheadedlaw on September 23, 2023. Posted in Divorce, Health, Senior.

One Detail Seniors Absolutely Should Not Forget When Considering Divorce

Of the many critical concerns and decisions to be made when a couple has decided to end their marriage, health insurance is often overlooked until the end. This can be a problem at any age, but according to a recent study by the Journal of Gerontology, one out of four U.S. divorces involve people over 65. Given the issues and expense of this insurance, couples may need to carefully consider what happens to their coverage (and its cost) if their divorce is finalized.

Employer-Provided Insurance

The least contentious scenario is if both parties are employed full time with benefits. Once divorced, their respective HR departments will notify their insurers of the qualifying change in status, payroll deduction will be adjusted, and coverage will continue for each. However, the family benefits are often being provided by one party. In Texas, a former spouse is not required by law to provide and pay for insurance for the other, but it can be included for a period of time in a mediated or court settlement ONLY if the insurer allows it. Most of the time, they DO NOT except through COBRA. This has to be handled very carefully for the spouse who will be uninsured after the divorce. There are specific time limits and methods for exercising this option, it is expensive (see below) and 18 months is the limit time period. If the primary insured plans to leave his/her job or retire, COBRA benefits are also an option. However, maintaining health insurance through COBRA can be prohibitively expensive (without the employer contribution, you will be paying the entire premium every month). Keep in mind that children can generally be kept on health plans (including those provided through COBRA) until the age of 26.

The Health Insurance Marketplace

If a divorce will result in one or more family members losing coverage, the marketplace (healthcare.gov) is an option. Keep in mind that these plans are available to all (including older applicants) without health questions or screening for pre-existing conditions – a great benefit for seniors who might have lost some spring from their steps. Using the marketplace also unlocks government subsidies, which are based on your stated income and phase out the more you earn. A divorce is considered a qualifying life event, so coverage could be obtained outside of normal open enrollment periods. With plans available at the bronze, silver, and gold levels (from least to most comprehensive), the marketplace can be a valuable resource. Dental and vision coverage is also available for applicants of all ages. These concerns should be addressed early on in the divorce process, as obtaining coverage takes time.

The Question of Medicare

If one spouse is already enrolled (or eligible to enroll) in Medicare, divorce can jump start additional discussions. Planning is sometimes aided by knowing when existing coverage will end. Anyone 65 or older is guaranteed acceptance into Medicare, and losing employer-provided coverage is an event that provides applicants with a special enrollment period. It is important to avoid delay if applying for Medicare. The process can take time and you want to avoid a lapse in coverage. Benefits known as “Part A” are free (other optional coverage tiers are usually deducted from social security benefits or billed directly). Anyone working (and paying Medicare taxes) for 10 years is eligible for free Part A coverage (which includes inpatient hospital care, nursing, home health and hospice services). If a spouse does not qualify on his/her own work history, they can qualify on the history of the ex-spouse. As long as they were married ten years or longer, free Part A coverage could begin at the age of 62. If a spouse remarries, he/she can obtain Medicare through the work history of the current spouse under the same age rules. Keep in mind that these are Federal plans and the divorce will be granted/heard in a State court. The divorce judge has NO authority regarding Medicare. To know your options, it is advisable to check either with an elder law attorney or call Social Security directly.

Don’t Gamble on Insurance

Yes, medical insurance is expensive, and couples involved in divorce proceedings may feel they have bigger issues to resolve. Don’t put it off. When you consider that a simple appendectomy can add up to $50,000 or more in hospital, anesthesia, surgical, drug and other charges, it’s not a risk worth taking. Medical and other insurance for ex-spouses and family members should be discussed during settlement negotiations due to its cost and importance. If you have any questions on how to address medical insurance during a divorce, or would like more information, please feel free to contact the Essex Law Firm for an in-person or virtual consultation.

Community Property and Separation – The Surprising Truth

Written by redheadedlaw on July 22, 2023. Posted in Community Property, Divorce, Separation.

The word “separation” is commonly heard prior to divorce proceedings. Couples may separate physically and emotionally with the intent of either working out their problems or not, but in legal terms, the definition is surprisingly simple. To be separated is to live apart from your spouse while married. What this actually means in real life with regard to income and property can be very surprising.

Separation and Community Property

Couples separate for many reasons in addition to having marital problems. It may be done for religious reasons, or to maintain health and other insurance benefits. However, a fact that is commonly overlooked is separation does not “stop the clock” on the accumulation of community property. Texas is a community property state, and generally speaking, so long as a couple remains married the rules of community property still apply.

Even though this is a straightforward concept, here are a few examples from actual case law that may further illustrate the point.

Example #1 – The Bonus

A couple was experiencing marital difficulties, and the female (who was the primary breadwinner) decided that their multiple attempts at reconciliation had failed. She decided to separate before year-end, when she expected a large performance bonus from her job. In early November, she moved to an apartment with the intention to file for divorce early the next year. She received her bonus in mid-December, and it was immediately contested by the husband, who claimed he was owed half. Even though they had been living apart and handling their own finances, the Court ruled for the husband because they were still married.

Example #2 – Income from Real Estate

Another couple acquired a duplex near a university early in their marriage. At the time, the husband was able to qualify for the loan individually, so he did and the property was recorded in his name. Both spouses worked on the property together and paid for repairs and maintenance out of whatever funds they had. It became a very successful, long-term rental, but the marriage soured and after several months of strife, the husband moved into one of the units. He became the on-site manager for the tenant, handled all issues, and also began receiving all rental payments in a separate account. The wife contested his belief that he was entitled to all rental income, even though they had been separated and he had taken over all property management. Again, the Court awarded the wife half of all rent money received solely by the husband.

Example #3 – Half the Assets

This is a more extreme example. It happened in South Africa, but had it occurred in Texas the end result likely would have been no different. In late June, a story was published describing a couple from South Africa. Married in 1980, the husband went to work in mining and transport. Times were difficult, and after coming home from work one day in 1998, he found his wife had left to seek work in another city. They lived apart for the next 22 years, working but never engaging each other. By the time the husband retired in 2020, he had acquired some assets and a pension from his employer, and in retirement, decided it was time to end the marriage. The wife countersued for half of his assets (including those earned during their 22 years apart), and because they were still married, she won.

One more caveat – remaining married to someone you have little contact with can lead to IRS problems, as they consider both parties responsible for any tax issues. If this marital limbo were to go on for years, one spouse could be liable for the taxes and penalties of the other.

Nine (Thousand) Degrees of Separation

Even though this last case occurred 9,000 miles across the Atlantic, it carries an important lesson. In Texas and elsewhere, you remain married until the day you are not. In the eyes of the law, this means each spouse is still acquiring community property and still earning joint income. If you are contemplating the idea of any kind of marital separation, there are ways to mitigate this impact, such as with a post-nuptial agreement. If you have any questions on separation or would like more information, please feel free to contact the Essex Firm for an in-person or virtual consultation.

Up In The Heir The Risk Of Dying Without A WIll

Up in the Heir – The Risks of Dying without a Will

Written by redheadedlaw on May 14, 2023. Posted in Death, Real Estate, Wills.

There are some decisions most of us are OK delegating. What happens to your assets upon death is not one of those casual concerns. Chances are, everyone reading this has strong opinions about who will receive their hard-earned money and property. Unfortunately, your opinions won’t matter if you die without a Will – a situation known as “intestate” in the legal profession.

A Surprisingly Common Situation

According to a recent Caring.com study, as many as two-thirds of Americans do not have a Will. Actually, that’s not quite accurate – if you don’t have your own Will, the state where you live already has one “written” for you. And you probably won’t like it.

For example, the accounts of anyone dying intestate are often frozen, since after the owner’s death only a court can legally authorize transactions in the name of the deceased (by appointing an executor). To be appointed as an executor in Texas, one must follow these procedures (assuming there is a valid, written Will naming an Independent Executor, properly executed):

File an application for probate of the Will in the appropriate jurisdiction with the appropriate forms and pay the appropriate fees.
If the original Will is not available (but a copy or handwritten will is being probated), obtain and report the names and addresses of everyone who might be considered a potential heir.
Use local media to publish the Notice of Creditors – this notifies creditors that the clock is running if they have claims.
File an inventory and appraisement of the assets of the Estate on date of death.
Notify all beneficiaries named in the Will in writing that you are petitioning the Court to be executor.
Attend the court hearing in person or via teleconference (court and county dependent) where your application to serve as executor will be determined. If the Will has been properly prepared and executed, you are not otherwise disqualified from serving, and it is not contested, appointment of the executor is the norm.

Not a Slam-Dunk

Assuming the Court appoints the applicant as the Executor, the county clerk (or a similarly named official) will issue Letters of Administration giving the named person the authority to transact for the deceased. Keep in mind, more than one person can petition the court, although this is not usually done if the Will is properly prepared and names an Executor. Even in a modestly sized family it’s easy to imagine how this could become contentious, although contesting a valid, written Will naming an Independent Executor is rare. The entire process, from the time of appointment of the Independent Executor until the final documents are prepared and any funds disbursed, takes approximately 6-8 months in Texas.

One Size Does Not Fit All

If there is no Will or the Will has not been properly prepared, state procedures for intestacy were created. Although the state has the best of intentions, intestacy procedures will not likely address all family situations. This procedure, called an Administration of the Estate, may require some or all of the following:

Texas law requires an accounting of community versus personal property.
Siblings of the deceased are not likely to inherit anything unless they are sole survivors.
Children of the deceased are unlikely to inherit anything if there is a living spouse and that spouse is their parent.
Step-children of the deceased are also not likely to inherit anything unless they are not the children of the spouse; if not the children of the spouse, they may be awarded an interest in the assets of the Estate, including any real estate. If you are the surviving spouse, you could potentially own the house you live in with your step-children!
Custody of any minor children may be up the court to decide (they would appoint a guardian for the children and a conservator to oversee related assets). This may be decided by a family court if there is a dispute over whether a biological parent or a step-parent would have custody.
If both parents pass simultaneously the Court may appoint a state agency as child guardian, such as CPS, if there is no relative willing to step in.
There is generally no way for the Court to direct part of the estate to charities.
The Court will divide an estate equally among children (even if one or more is special needs), if they are the sole survivors and there is no surviving spouse or other pertinent relatives.
The Court will not create trusts so minor children won’t blow all the money when they turn 18.

You get the idea. There are also rather complicated rules concerning the disposition of assets depending on the type (community or personal) of property, the decedent’s marital status before death, and whether the children are from the most recent marriage.

Some Good News

The problems with intestacy are significant, but there is some good news. Certain accounts and property can pass automatically to a surviving spouse depending on information recorded at the time of purchase or account opening. Some of the items below are NOT probate assets and the Court will not have jurisdiction over them unless there is no beneficiary named on the accounts:

Non-probate: Retirement accounts (via beneficiary designation)
Non-probate: Life insurance proceeds (via beneficiary designation)
Non-probate: Funds such as Merrill Lynch, Fidelity, IRA’s, etc. (via beneficiary designation)
Probate (unless a joint account or a POD has been signed): Savings and other bank accounts
Probate: Real estate (by type of ownership)
Probate: Other physical property (like vehicles – by type of ownership)

These types of assets can pass to heirs outside of probate as long as ownership is joint and/or the beneficiary(s) are listed with account custodians. But if there is no will, isn’t there a good chance beneficiary and account ownership information aren’t current either?

Take the Time Now

Some decisions in life should not be left to chance. Parents have strong opinions on what should happen to their assets in passing. Also, emotions can run high during such a transition, and no wants to create a family fight if it can be easily avoided. To be certain your wishes are executed swiftly and with the least expense of money and energy, have a will prepared and check all accounts and other property for current ownership information. If you have any questions on wills or would like more information, please feel free to contact the Essex Firm for an in-person or virtual consultation.

Couples Considering Divorce Should Avoid Social Media

Written by redheadedlaw on March 18, 2023. Posted in Divorce, Social Media.

Here’s a non-surprise – most unhappy couples look to their partner’s social media accounts for evidence of wrongdoing. There have even been studies showing Facebook had a hand in up to two-thirds of American divorces! If there were an intersection where drivers had a two out of three chance of crashing, all would detour around it. Today, many family law practitioners agree that social media can become a huge wedge that breaks couples apart. Let’s examine how this can happen and why it may be wise to avoid social media during times of spousal contention.

It’s Simple Math

Many will agree that there is no better brainless way to spend an hour (or three, or seven) after a hectic day than browsing Instagram or watching TikTok. But what is commonly overlooked is the question of time – every hour spent staring at a phone is one less hour you can spend building relationships with your spouse, family, and friends. Worse, it can’t be said that, whoops, I don’t know where the time went. A choice was made, and choices reflect personal priorities. If you don’t value your marriage, then why should your partner?

But assume the relationship has deteriorated sufficiently for both sides to be considering divorce. How should social media be handled to avoid issues later? Here are a few thoughts to consider:

Don’t delete your accounts – this makes people look extremely guilty of something. Besides, the internet never forgets, and there is always a way for online content to be reconstructed. In court, this could also be viewed as “spoilation” of evidence. And, in Texas, it is a criminal act to delete social media, email, or text accounts in anticipation of litigation.
Do change your passwords (this is a sound periodic practice even in the best of times). Be sure your privacy settings are set to the highest levels, and be very leery of getting tagged in photos by others. In a court of law, you can be depicted by the company you keep.
Never, ever discuss your spouse or your case, and do not under any circumstances vent online. Everything posted is in the public domain and could be used in court. And since attorneys and judges are human, do not give them any reason to portray you as cruel, vindictive, or worse, by disparaging them.
Search the internet about yourself using the major search engines. Find out what “it” knows and what information is currently associated with you. While eliminating undesirable references is probably impossible, at least you can brief your lawyer so he/she is not blindsided later.
Be extremely cautious in posting photos or videos. These establish an unassailable record of your whereabouts, habits, and friends. You can’t claim poverty if you’re seen on the balcony of an expensive hotel suite in Bermuda. You can’t claim you’ve never met a particular person if they are sitting in your lap. And there is also the unknown – Alex Murdaugh never imagined that a video containing his voice would probably determine his fate.
Last but certainly not least, do not seek revenge. This includes posting intimate photos, now commonly referred to as “revenge porn.” This is generally illegal and can lead to job loss, significant fines, and sometimes jail time. Also (even though this should be obvious), do not post intimate (or even friendly) images of yourself. Proof of adultery can negate the possibility of support, negatively impact the distribution of assets, and turn people (and your kids) against you.

Is It Worth the Risk?

While it is possible to continue posting to social media, you can see there are numerous minefields that must be avoided. You can ask yourself if a specific post would be embarrassing (or worse) if produced in court, but sometimes even the most innocuous photo might undermine your position. There is an increasing consensus in the legal community (based on our experience) that social media should be avoided once a relationship turns sour. In fact, we advise our clients to completely avoid social media while the case is pending. If you have questions about using social media or any other family law matters, please feel free to schedule an in-person or online appointment.

Can Your Children Choose To Live WIth You

Can Your Children Decide To Live With You?

Written by redheadedlaw on January 21, 2023. Posted in Child Custody, Divorce.

Perhaps the toughest part of a contentious divorce is how it impacts kids, particularly teenagers. The proceedings can be lengthy and divisive, and may expose younger family members to situations they had no idea existed. In Texas, there is well-established precedent for thoughtfully addressing where children of divorced parents will ultimately live. Today we will explain how this process plays out and the reasoning behind it.

Can’t Buy Me Love

About ten years ago, the Texas Family Code was changed with regard to children “choosing” a parent in a divorce. The previous statute allowed kids 12 and older to submit their preference in writing to the court. Sounds like a sensible idea, but in practice what often happened was each parent got their kids to choose them, leading to a stalemate that caused the proceedings to be further drawn out. The new statute eliminates the issues with the statement by allowing the kids to speak directly to the judge and express their wishes (upon request of a parent). For children under 12, this “interview” is at the discretion of the court.

This change in the statute eliminated one problem, but was also intended to help solve another. When selecting a parent to live with, there is nothing stopping kids from going with the one who:

Buys them the most toys, and/or
Has the most lenient parenting style

The Custody Decision

In Texas, custody is known as conservatorship. The parent who receives child support (and decides where the child lives) is called a primary conservator. To decide who will become primary conservator, the court considers:

What has been happening before? Has the child primarily lived with one parent? If so, why is a change needed? This is the first and most important thing the judge looks at
Needs (physical, emotional and health)
Living situations of each parent
Financial situation of each parent (but not who is the richest or has the best job)
The health of the parents
Family history (abuse, negligence, etc.)
The current relationship between the parents (such as whether they co-parent well or if one obstructs the other with children’s issues)

Judges interview the child in chambers, sometimes with a court employee also present, and, upon request, a court reporter. Attorneys and parents are not present, as the interview is intended to be private to protect the child and also to allow the child to speak freely. Judges have been around, and they do not typically ask, “Which parent do you want to live with?” Instead, they usually have a conversation with the child about the child’s living experiences at each household. “If you play sports, tell me about that” for example. In getting the child to talk and open up, the judge can begin to see what is happening at each household. These interviews take place usually after a full trial or hearing and the judge using the information in addition to what he or she has already heard. The judge will then rule based on what is best for the child in a given situation. The court will consider the evidence, including the opinions of therapists or counselors, teachers, friends, neighbors, other family members to name a few.

Children except in unusual cases, do NOT testify. In fact, it is considered very risky to request that the child testify because most judges are so adamantly against it and will admonish the lawyer who asks for it.

Children Cannot Be Trained for Court

Parents should never “groom” their kids for court, or allow them to be used as pawns. Judges will not take kindly to such activities, and because of their time on the bench, they will see it immediately. In fact, it is a standard admonition never to discuss a case with a child. Children should typically be told, “Both your parents love you. We are trying to do what is best for you. The decision will be made by adults.”

Never coerce or pressure (or worse, bribe) your kids to use against the other – it will backfire. And many judges don’t even want kids directly involved in custody decisions due to the anxiety and stress that is unavoidable. If you have any questions on conservatorship or would like more information, please feel free to contact the Essex Firm for an in-person or virtual consultation.

New Child Support Payment Options in Texas

Written by redheadedlaw on October 31, 2022. Posted in Child Support, Online Payment.

It is safe to say that it is in the best interest of Texas (and likely all states) to make it easier as possible for parents to comply with the terms of a divorce. No one is served by complexity or bureaucracy, and this certainly applies to anyone making court-ordered child support payments. Given the recent growth in ways to transfer money (along with the enthusiastic public acceptance of these applications), governments across the country are getting on board. The Attorney General of Texas recently announced additional electronic methods for parents to fulfill their child support obligations. Today, we will summarize these new changes.

The More Options, the Better

Generally speaking, having more options for parents to make their child support payments (on time and in the correct amount) is very desirable from the perspective of the state. The Federal Government has passed legislation requiring states to use formulas for setting child support. The idea is not just to provide for basic needs, but to maintain the child’s living standards. There are no attempts in this calculation to punish either parent for two main reasons. First, no one is served by having one or the other parent living in poverty, and second, such a situation could not help but cause distress for the child.

New Electronic Payment Options

In Texas, parents may now use Venmo, PayPal, Apple Pay and Google Pay to make their monthly child support payments through the state’s Smart e-Pay system. To use this system, the following information is needed:

First and Last Name
Social Security Number
Address (for first-time registrants)
10-Digit case Number and/or Cause Number
Valid Email Address

Using Smart e-Pay, child support payments can be made online, over the phone, or at a kiosk (use this link to view kiosk locations in Southeast Texas). While there may be fees applicable to these transactions, they are secure and a record is maintained of all transactions for each payer. This detail can be useful if any questions or disagreements arise about timing, receipt, or payment amounts. The MoneyGram service can also be used to pay child support obligations – check here to view process times and fees for this service.

Questions?

For questions on using these services, please feel free to review the website for the Attorney General of Texas, or call 855-853-8286. As you know, one of our goals at the Essex Law Firm is to be sure our clients (and prospective clients) understand what to expect during divorce proceedings. If you have any questions on child support or would like more information, please feel free to contact the Essex Firm for an in-person or virtual consultation.

Preparing for the End of your Marriage!

Written by redheadedlaw on September 24, 2022. Posted in Child Custody, Death, Divorce, Finances, Probate, Wills.

Are you contemplating a divorce, or do you think your spouse is? Here at The Essex Law Firm, I tell my clients, even if you are in the happiest of marriages, all marriages, sadly, end, and they end in one of two ways: death or divorce. Most people realize they need to have Wills. Even if you do not see divorce or imminent death of your spouse in your immediate future, you should approach preparation for the end of your marriage in the same way. You will encounter much less stress and financial hardship if you PREPARE AHEAD OF TIME by assembling the documents below and keeping them in a safe place. You should also remember to update them at least once a year.

After practicing law for over 35 years, we know what needs to occur to minimize your stress and to get the most successful outcome for you. The following is a comprehensive list of what you will need to have on hand in either divorce or probate (and you can download a simplified checklist to help you keep track):

Financial Statements
Provided when obtaining a mortgage, loan, or other credit. These will establish a client’s income, net worth, and profit/cash flow from one or more businesses.
Tax Returns
Try to provide at least two years of returns if possible, including all schedules like W-2s, 1099s, K-1s, along with any corporate returns. Other years may be required later.
Paycheck Stubs
Provide the last 6 months. These will show bonuses, retirement, and pension contributions along with year-to-date totals.
Bank Account Information
Provide at least the last 2 years of statements. Bank statements are essential to establishing a financial picture of the client, and also should correspond to deposits reflected on paycheck stubs.
Brokerage Statements
Provide at least the last 2 years of statements. You will need copies of all brokerage statements showing accounts held individually, jointly, in trust, or through a corporation. Statements for other years may be required later.
Loan Applications
All mortgages, second mortgages, HELOCs, credit cards, etc., along with any pending loans must be disclosed. These should line up with the financial statements and it can also complete the cash flow picture of a client.
Business Ownership Records
Ownership and operating agreements, trusts, and the like must be disclosed for the court to render an accurate judgment.
Computer Records
Hacking your spouse’s computer (or installing spyware) is a crime, but if you have electronic evidence that may help your case, AND YOU DID NOT OBTAIN IT ILLEGALLY, please be sure to bring it. If you have a question about legality, please discuss it with us first before providing it.
Stock Options
These can be extremely valuable but are often not exercisable until some point in the future, so bring everything you have and this information can be requested from opposing counsel early in the process.
Pension, Profit Sharing, and Deferred Compensation Plans (401k)
Provide the last 2 years of statements. More may be required if you acquired the plan prior to your marriage.
Credit Card Statements
Provide the last 2 years of statements. Purchases can be hidden in credit card history that might be for someone outside of the marriage.
Other Debts
To divide assets accurately all debts need to be considered.
Insurance
There are many different kinds of insurance, some with cash value (whole life insurance) and others (like homeowners) which can include appraisals of property or valuables.
Real Estate
We will need all real estate deeds, tax bills, lease information, and any additional (passive or active) interests in property.
Personal Property
A list of items (preferably listed by room) that you currently own and whether the item was acquired before or after the marriage. For autos and boats, provide a copy of your insurance card showing VIN numbers, etc.
Wills and Other Legal Agreements
These includes powers of attorney, which can be problematic and must be disclosed.
Memberships
Country club memberships (for example) are assets that need to be included.
Lawsuits or Judgments
These include any bankruptcies or prior divorces.
Charitable Contributions
It’s likely the tax returns will also contain this information.
Medical Records
If either spouse has a disability, these are useful in justifying reduced income or lengthy unemployment.
Phone Records
It’s often important to establish a timeline and these records can help.
Safe Deposit Boxes or In-Home Safes
An inventory of the contents can prevent problems later.
Tapes, Photos or Other Typed/Written Communication
If you have any questions on this topic please ask us prior to or during your first consultation.
Calendars
These can also help jog memories and establish timelines.
Intellectual Property
Not as common, but some people receive periodic royalties for intellectual property.
Fault
If you have documentation that helps determine fault in the divorce, this is obviously important to provide.

For Determining Child Custody

Proof of Primary Caregiver
You will need to provide proof as to who is the primary caregiver.
Proof of Stability and Continuity
Courts usually are receptive to the idea of continuity in a child’s life so anything establishing involvement in community activities is helpful.
Parental Preference
Provide any evidence reflecting where the children want to live.
Character of Other Adults
The character of any other adults in the children’s lives should be documented.
Report Cards
These often include teacher’s notes which can be useful.
Drawings
Children often express issues through their drawings and writings.
Abuse
Any evidence of abuse between any family members should be provided.
Homemaker
It is also important to gather any documents showing who (often the primary caregiver) has been “staying at home” to care for the children.

Be Prepared

To make this process as smooth as possible and reduce the inevitable stress and financial hardship, assembling these documents ahead of time is essential. If you have any questions or would like more information, please feel free to contact the Essex Firm for an in-person or virtual consultation.

Summarized Checklist

We created for you a summarized checklist that you can download to print and use, to help you gather your documents together.

Download Checklist

The Surprising Truth about Same Sex Marriage in Texas

Written by redheadedlaw on June 25, 2022. Posted in Marriage, Pride.

Given the ongoing national debate over same-sex marriage, one might assume it is a complex legal topic that is still evolving. Believe it or not, it is not only a done deal – it has been settled for seven years. Same-sex marriage has been legal in Texas (and the other 49 states) since the Obergefell v. Hodges decision by the Supreme Court in 2015. You can imagine the reaction – huge pent-up demand for this privilege was immediately unleashed. In the three months following the decision, 2,500 same-sex couples were married in Texas, with many more since. As there is not a great deal of summary information on this topic (outside of dry legal journals), we will do our best today to answer a few of the most common questions.

The Logistics of Same-Sex Marriage are Identical

There are no shortcuts for same-sex couples to wed in Texas (sorry!), but neither are there extra hurdles to jump through. Here are the three steps to follow for a legal (same-sex or heterosexual) Texas marriage:

Apply for a license at a county clerk’s office
Complete a sworn application establishing each is legally eligible to enter into a marital relationship
After a 72-hour waiting period, any couple can be married by a judge or authorized religious official

Of course, there’s always some fine print – these caveats apply to all marriages in Texas:

Neither party can be currently married
Anyone younger than 18 needs an authorizing court order
Marriage between relatives is limited (no marriage between first cousins or closer by blood, nor can family members marry a current or former step-parent or step-child)

And as a result of the Supreme Court decision, it is unlawful for any authorized official to refuse to perform the marriage ceremony between two eligible parties due to race, religion, national origin, or sexual orientation. In addition, any lawful marriage performed in another state (or country) is also valid in Texas.

Surprise #2 – There are Tax Benefits to Legal Same-Sex Marriage

We know that marriage is all about the lovey-dovey stuff, but after the rice is swept up and the gifts are opened/returned, there are also positive financial ramifications! Many of these federally sponsored benefits are now available to same-sex married couples, including:

Filing joint income tax returns
Estate and gift tax exemptions
Creating family partnerships (to divide business income)
Veteran’s benefits (health, death pensions, loan guarantees, etc.)
Social Security benefits

Legal marriage also establishes the presumption of joint ownership of mutually acquired property, and strengthens the rights of both parties with regard to their children.

Surprise #3 – Same-Sex Couples are Now Eligible for Group Benefits

Prior to the 2015 Supreme Court decision, some states denied same-sex couples the right to marry, and as a result, employers were able to withhold group spousal benefits, such as health insurance. Now, employers must extend any group benefits to any legally married spouse, regardless of sex. This includes the post-employment continuation of health coverage commonly known as COBRA.

Grinch Alert – Employers can decide not to offer group health to any spouse (booo!), but they cannot pick a particular group of spouses (like those of the same sex) to exclude.

And there is far more to group benefits than just health insurance. Any ERISA-covered pension plan must provide qualified joint and survivor annuities when an employee is legally married. Other retirement accounts (like 401(k)s) must provide similar options or facilitate the transfer of the account balance to the surviving spouse upon the death of the other. Same-sex married couples are also covered by the Family and Medical Leave Act. The rules covering workers’ compensation now also apply to same-sex married couples.

A Few (Cautionary) Knowledge Bombs

As you can see, there has been tremendous change in Texas (and across the nation) with regard to same-sex marriage since 2015. The net result is to place same-sex couples on (nearly) equal footing with their heterosexual counterparts. While not quite a Grinch Alert, we do have several words of caution. In my experience, issues regarding same-sex marriage are much more likely to be litigated in Texas. I believe this is because opinions on this topic are more polarized here, and also because not all Texas courts are as experienced with same-sex marriage as others.

One more recommendation – as soon as a same-sex couple decides to become parents, please strongly consider seeking legal advice (particularly if you are not the parent giving birth). Resolving custody disagreements between same-sex parents is a rapidly growing area of the law in Texas and elsewhere. Unfortunately, we have seen many parents lose all rights to a child during court proceedings without the correct legal safeguards in place. And of course, in the unhappy event your union is suffering and divorce is being contemplated, it is also advisable to have legal representation.

Equal Protection Under the Law

With same-sex marriage officially the law of the land, individuals of all sexes are now protected if they choose to follow their hearts. The leveling of the marriage playing field will undoubtedly result in more same-sex unions, and (hopefully) more happy families. If you have any questions or would like more information, please feel free to contact the Essex Firm for an in-person or virtual consultation.